Professor of Strategy and Management
The unprecedented shifts in the U.S. dollars exchange rate that started during the late 1970s and continued through the 1990s provide an ideal opportunity to explore how the global economy works and the role that multinational enterprises (MNEs) play in the phenomenon. In this book, the authors examine the international pricing, sourcing and trade responses of MNEs to shifts in the dollar. Based upon the micro patterns they observe in MNE behavior, the authors suggest explanations for some puzzling macro patterns evident in our international economy. They conclude that global integration of markets remains incomplete due to informational and other discontinuities, and they refute stereotypes that portray multinational firms as either footloose or inflexible. Policy implications for exchange rates, trade and foreign direct investment are also discussed.